Cash for Clunkers

tmhudson2

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Aug 30, 2007
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Nashville, TN
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I was talking to a new car dealer after dinner on Friday night. Typically, he was complaining about the Cash for Clunkers program. I had heard about the overloaded government computer system where dealers have to send their ‘paperwork’ to get reimbursed, with many dealers having been paid by Treasury for less than 5% of the cars they’ve taken in on trade in the promotion, and some less than 3%. No surprises there.

I had heard the stories of mechanics getting a tear in their eye as they euthanized still-functional cars and trucks, in some cases vehicles with fewer miles than their own rides. As a gearhead, I feel their pain.

This dealer was going to stop taking clunkers in on trade on Sunday, a day early. Not only was his wife working after hours to try to get the entries uploaded to the DOT system; he was worried about getting paid for some of his trade-ins at all. One of the provisions of the program is that no family may trade in more than one clunker, yet there is no provision in the Federal database that is shared with dealers to allow them to see if that seller has brought in more than one clunker for trade.

Let’s say Joe Clinton takes a ‘96 Chevy pickup with a market value of $800 in to the local Chevy dealer to trade on a new pickup, and gets the $3500 trade-in credit. Then he takes his ‘92 Eldorado worth $2000 to the Caddy dealer to trade in on a new CTS, and gets the $4500 trade-in credit. Which dealer gets reimbursed, and which gets stuck? Whoever gets their ‘paperwork’ accepted into the Federal computer system first gets reimbursed, and the other dealer is out of luck, and he doesn’t even have a vehicle he can fix up and sell, since he’s already poisoned it with sodium silicate.

And just how is the government going to manage our healthcare system? It’s in the fine print….
 
I'm waiting for the cash for clunkers refrigerators stimulus that kicks in pretty soon. I wonder if my boat qualifies.
 
My slip neighbor is a dealer and first started to whine about all the 135 pages of regs when this first came out. I told him to be prepared to have the rules changed at the last minute, not get paid timely, have your claims sent back because the paper work is supposedly incorrect and not be able to find anyone in the program able to answer your questions... how did I know? That's my everyday experience dealing with Medicare.
 
The program was a farse from its inception. Did anyone really expect this "program" to run any smoother that any other Government give away?

If Jim-Bob could have afforded car payments, he wouldn't have been driving a clunker in the first place. If the dealers needed quick influx of cash they went with the wrong program......the Government isn't quick about anything.

I understand that there are exceptions to the above mentioned scenerios but to all who participated and are worried about payment, (or making payments), don't fret too much. Wether you sold a car at a supposed discount in hopes that the taxpayer would reimburse you, or you bought another car that you cant afford, because in two years Obama will write you a check, out of my checkbook, to bail you out of your self inflicted finincial woes.
 
"And just how is the government going to manage our healthcare system? It’s in the fine print….[/quote]

With sodium silicate?
 
The program was a farse from its inception. Did anyone really expect this "program" to run any smoother that any other Government give away?

If Jim-Bob could have afforded car payments, he wouldn't have been driving a clunker in the first place. If the dealers needed quick influx of cash they went with the wrong program......the Government isn't quick about anything.

I understand that there are exceptions to the above mentioned scenerios but to all who participated and are worried about payment, (or making payments), don't fret too much. Wether you sold a car at a supposed discount in hopes that the taxpayer would reimburse you, or you bought another car that you cant afford, because in two years Obama will write you a check, out of my checkbook, to bail you out of your self inflicted finincial woes.


Doh, I just realized the incredible genius in the cash for clunkers program!!!! When Jim-Bob can't make the payment for this new vehicle, the dealer will get it back for lack of payment and can sell it again! OMG, it's so obvious I missed it! The dealer will get the $4500 from us(the government(it is afterall our money)), and get to sell his car to someone that can pay for it! And, we'll get those damn clunkers off the road, so less wear and tear on the road, and wasting gas for the oil speculators to bump the price of oil up with.

-VtSeaRay
 
But just think how many people the paper trail is keeping in a job and and all those folk working for the "repo" companies too. The folk working in the banks finding ways to offer loans that people can't afford, the employment created for debt councilors.
Think of all that scrap steel that can be sent to Japan for them to build more cars (Sorry, was that the wrong thing to say?)

We're on our way to Utopia and you just can't see it!
 

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